Monster Settles Class Action; Buys Trovix For $72.5M

By Eric Savitz

For starters, the company announced that it has reached a tentative settlement of a securities class action connected with the company’s previous stock-options granting practices. Defendants will pay $47.5 million; Monster’s share net of insurance and a contribution from another defendant will be $25 million.

Monster also said a state court has granted approval of a previously announced preliminary settlement of related securities derivative lawsuits. The company will receive $10 million “from various individuals.” Also, the Class B shares held by former chairman and CEO Andrew McKelvey will be converted to ordinary common stock, restricted stock units will be canceled and the exercise price of certain options will be increased.

Also, Monster announced that it will buy Trovix Inc., a provider of employment search technologies, for $72.5 million in cash. It also is acquiring Armees.com, a French site target and the families of French military personnel. The company said neither acquisition would have a material impact on 2008 financial results.

Not least, Monster posted Q2 revenue of $354 million and non-GAAP profits of 40 cents a share; the Street had been expecting $361 million and 37 cents.

There was no specific guidance in the release, although the company did say that it expect to “continue to operate in a difficult environment in the near-term.”

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.